"He told me there were many skeletons in the closet and 'the door hasn't even been opened yet'," he said in the affidavit. The affidavit named a person whom Mr Watson alleged Mr Simpson had indicated was connected to the unauthorised spending of council funds that was, in Mr Simpson's view, in the public interest.
Ms Mai asked for direct evidence from Mr Watson but none was forthcoming and when she put the allegations to Mr Simpson and the other people named in the affidavit they had reasonable and credible explanations for the comments raised in the affidavit.
"Unfortunately the staff member [Mr Watson] has put two and two together and come up with eight. There was no evidence of any wrongdoing and that's the end of the matter as far as I'm concerned, but I'm happy to reopen (an investigation) if somebody comes forward with credible evidence."
Ms Mai said the investigation and allegations had been a distraction, but it was now put to bed and the council could move on.
The matter will go to the full council on Wednesday and Ms Mai said she spoke with Mike Reid from Local Government NZ and Bruce Robertson from the Office of the Auditor General (OAG) about the allegations.
"The initial and continued response from the OAG was that there was insufficient information to support an investigation by the office without specific detail of items or areas of unlawful or unauthorised expenditure. If substantiated information is provided I would without hesitation refer that to the OAG it being the appropriate authority to investigate such allegations. As it has determined that it has insufficient information to proceed further so I consider also that the matter should be concluded."